Universal Insurance Co. v. Burton Farm Development Co. In an underlying lawsuit, a subcontractor alleges that the defendant-developer’s project manager defamed the subcontractor and intentionally caused a breakdown of the contractual relationship between the subcontractor and the developer. Even though the project manager’s commercial lines insurance policy – which names the developer as an additional insured — contains an exclusion for injury “done by or at the direction of the insured with knowledge of its falsity,” since the policy treats each insured separately, the insurer is required to defend the developer against the subcontractor’s claims against it.
Builders Mutual Insurance Co. v. Mitchell. (Lawyers Weekly No. 11-07-0331, 18 pp.) (John C. Martin, Ch.J.) Appealed from New Hanover County Superior Court. (W. Allen Cobb, J.) N.C. App. Click here for the full text of the opinion. Holding: The fact that an accident may have arisen from the insured’s negligence does not prohibit coverage [...]
Bain v. Unitrin Auto and Home Insurance Co. (Lawyers Weekly No. 11-07-0266, 15 pp.) (Martha Geer, J.) Appealed from Guilford County Superior Court (Edgar B. Gregory, J.) N.C. App. Click here for the full text of the opinion. Holding: Where an injured insured hired an expert witness on his own before the filing of a [...]
North Carolina has joined a majority of jurisdictions that require a policyholder to provide actual notice to an insurer of a claim before a duty to defend arises. Winston-Salem attorney Garth Gersten (pictured) described the March 15 ruling by the Court of Appeals as "important both for insurance companies and policyholders because it emphasizes that policyholders need to provide notice of claims as soon as possible to their carriers. Notice is not a luxury; it is sound risk management."
Kubit v. MAG Mutual Insurance. The duty to defend arises when an insurer receives actual notice of the underlying action. Since a doctor's complaint against individual anesthesiologists contained . . .
Bissette v. Auto-Owners Insurance Co. An insurance company has the duty to defend in a case in which a vehicle has been sold to another party without proper notarization of title and when an accident occurred before seller's insurance was set to expire. Even when . . .
Huber Engineered Woods, LLC v. Canal Insurance Co. (Lawyers Weekly No. 10-06-0976, 2 pp.) (Per Curiam) Appealed from Mecklenburg County Superior Court. (Jesse B. Caldwell III, J.) On appeal from the N.C. Court of Appeals. N.C. S. Ct. Click here for the full text of the opinion. Holding: For the reasons stated by Judge Steelman [...]